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Wednesday, 23 April 2014

As National Realty Investment Advisorsexperts affirm, the real estate
market has seen a drastic turnaround and now is a promising time to invest in residential properties. It can be intimidating to engage in the real estate market without prior experience. But with knowledge
about the potential risks and benefits, prospective buyers can expect
good things from their investments.

Real estate offers ample opportunity and promise compared with other
types of investments, according to Entrepreneur Magazine. In today’s
market, obtaining a bank loan and leveraging your capital is easy to
accomplish when you’re buying a house.

Real estate investment offers specific tax freedoms that aren’t
available through mutual funds and other investments. According to
Entrepreneur magazine, in most cases, investors won’t pay taxes on their
cash flow if capital is leveraged. They can also benefit from tax
deductions that can be applied to other income. Additionally, investors
can write off business deductions like travel expenses and other costs
incurred to maintain properties.

According to Kiplinger finance advice, mortgage rates are at
historic lows and buyers are feeling confident in the current market.
Home values are looking strong.

Although the market can change quickly, National Realty Investment Advisors’ professionals agree. “It’s the best time to jump on
the train,” said Dan Hirshout, Senior Project Manager. “With
investment grade professionally-managed new construction, you
have built-in equity, top rents and with the 6-year-old Dodd Frank
law regulating all appraisals and bank mortgage practices, (you have)
the most stable realty market in 50 years.”

Jill Sjolin, a real estate agent located in Washington, told MSN,
“We haven’t seen home prices this low in so many years, coupled
with the rates being so low. When the money is cheap to borrow and
the houses are cheap to buy, it’s absolutely the best time to
invest.”

“Home values are stable,“ said Art Scutaro, NRIA Project
Manager. “The lack of supply in the city’s empty lot environment
means they have nowhere to go but up – due to the city’s demand
trend of re-urbanization, there’s a low supply of lots.”

Before you jump into the market, you should learn about the
potential opportunities and risks that it poses. Real estate is
always a risky market, but some strategic decision-making can easily
eliminate the chance of pitfalls. Forbes advises investors to start
by looking for a property that doesn’t require a lot of time or
management – two things that can be very costly. Properties such as
college housing or vacation rentals are two examples that might fall
into the high-maintenance property category.

Kiplinger suggests a few surefire ways to make a profit in the
market. Flipping homes is a common strategy that helped some
investors make a fortune after the housing bubble burst. It’s best
to have cash when buying rundown properties, but keep in mind it is
harder to get a loan when you’re buying a property that isn’t
your primary residence. Plus, many of your competitors will make
all-cash offers.

In a 2013 article, Daren Blomquist, Vice President of
foreclosure-tracking website RealtyTrac, commented that house
flippers “can do very well in a market where home prices are on the
upswing,” and added, “That’s what we’re in right now in many
areas of the country.”

According to Investopedia, flipping houses for profit requires
strategy. Investors should look for homes that look worse than they
really are, such as having cosmetic problems that are easily fixed.
These properties are likely to have a small asking price and can
easily sell for far more with a little bit of TLC. The next step is
to look for sources of the lowest-cost labor and parts with the goal
of minimizing expenses. Home prices are indeed on the upswing in many
parts of the country, which is exactly what fixer-upper investors
should look for when waiting for the most opportune time to buy.

The renters market is huge right now, which offers ample
money-making opportunities for landlords and investors, suggest
National Realty Investment Advisors’ real
estate professionals. In fact, the rate of homeownership in the
U.S. fell to 65.4 percent in 2012. That’s the lowest it’s been
since 1996, based on Census Bureau records. Furthermore, apartment
rents rose 4.1 percent in 2012 and the average interest rate for
30-year, fixed rate mortgages. These numbers add up to promising
profit potential for landlords.

National Realty Investment Advisors Project Support Specialist
Adam Levine adds, “The key is staying in the major growing Cities
where people are flocking due to more job opportunities and the
ongoing Gentrification Re-urbanization mega trends. Both young
professionals and ‘empty nesters’ are flocking to the major
growing cities like Philadelphia and New York because that’s where
the opportunities are and all the energy and entertainment. Rents and
values therefore have to keep moving up because there is nowhere to
live.”

But even the smartest investors can fall into market traps,
according to the investment consultants at National Realty Investment Advisors. Buying a
property for less than it’s worth is always a possibility, but it’s
avoidable. There are a few major factors to ponder whenever you’re
considering a purchase. Pay attention to the quality of the
neighborhood, as location will always determine market value.
Consider the level of property taxes and whether this is something
you can manage. The characteristics of the schools, crime level, job
opportunities and amenities are also game changers.

It’s also important to examine the market in the surrounding
area to get a good idea of what kind of value you can expect from
your return. According to Investopedia, investors should check out
the average rental rates in the local area and see if these will
cover mortgage and expenses. Neighborhoods with an excess of listings
and empty properties are probably not a good place to invest in.

With the housing market on an upswing of recovery, experts,
lenders and market-watchers seem to agree that now is a safe time to
invest. Investors have a slew of options that have the potential for
strong profits in today’s market, including flipping homes and
renting them out. Professionals like National Realty Investment Advisors and the Kiplinger financial advisors suggest that a long as
investors avoid potential pitfalls and the market remains solid, real
estate can be a promising avenue for investment.